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August 15, 2013

Microsoft Investors Start Class Action Suit over Surface RT Losses

By Joe Rizzo, TMCnet Contributing Writer

Robbins Geller Rudman & Dowd LLP (Robbins Geller) is a plaintiff's class action law firm. It specializes in representing institutional investors in shareholder actions, and is the premiere plaintiffs’ securities litigation firm in the country.

The firm’s primary objectives are maximizing monetary recoveries for its defrauded investor clients, as well as obtaining meaningful corporate governance reforms on their behalves. Since its formation in 2004, Robbins Geller attorneys have recovered tens of billions of dollars for defrauded shareholders.

Earlier this week on August 13, 2013, the law firm filed a new class action suit. For all of you out there who enjoy reading legal filings, you can read the 31 page suit on your own. But suffice it say that Robbins Geller is suing Microsoft (News - Alert) for hiding major losses related to its Surface RT tablet.

The suit names as defendants Microsoft CEO Steve Ballmer, former chief financial officer Peter Klein (News - Alert), corporate vice president Frank Brod and executive vice president of marketing Tami Reller.

Investors are angry that the company reported its quarterly earnings and had to take a $900 million write-off for inventory adjustments and the recent 30 percent price cut made on the failed tablet. The complaint accuses Microsoft of "materially misrepresenting the true financial effect" that the tablet was having on the company's businesses and that it failed to tell investors about the excess inventory of Surface RT it was hoarding at the time.

By failing to alert shareholders, the company violated "generally accepted accounting principles" and "SEC (News - Alert) rules and regulations." The law firm is claiming that Microsoft "issued materially false and misleading statements regarding the Company’s financial performance and its tablet computer, the Surface RT."

It is claiming that the company's financial statements for the quarter ending March 31, 2013 were "materially false and misleading" and that Microsoft officials made misleading positive statements about the Surface RT during the "class period."

The case was filed in United States District Court for the District of Massachusetts on behalf of purchasers of Microsoft stock between April 18, 2013 and July 18, 2013, this is the “Class Period.” The law firm is still seeking a lead plaintiff for the case.

Edited by Ryan Sartor
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